Officials at the Inland Revenue Department (IRD) stated that they have started aggressive use of electronic media, including mobile phone services, to compel the taxpayers to comply with tax regulations. [break]
“Such a move has been made in a bid to remind people of their tax liability. It is also to give out the message that no one is free from the state’s scrutiny,” a senior IRD official told myrepublica.com.
Moreover, IRD has also resorted to an aggressive advertisement campaign, reminding the taxpayers to clear their half-yearly tax liability and to make use of the special tax concession facility pledged through the Financial Regulations 2008/09. The facility is expiring in a couple of days.
Under this facility, the government has promised additional exemptions of tax and fines to educational institutions and other firms if they register for VAT by Tuesday. "All private firms that have not complied with tax directives so far can also enjoy a similar facility if they voluntarily pay 10 percent income tax on the basis of the income they have shown in past audited financial statements," stated the official.
The facility, pledged under a convenient-tax scheme, also promises amnesty to house-owners and brick-kiln operators for fines for past delinquency if they clear their taxes at the rate of 10 percent for the span of the last fiscal year.
Likewise, the government has also urged the taxpayers to pay 40 percent of their anticipated income tax by Tuesday, when the half-yearly account books will be closed.
"Such individualized messaging has been done with an aim also of cautioning people that they will not get away with flouting the law," stated the official, elaborating that this massive campaign and stringent approach have been adopted to compel people over their responsibility to the state.
IRD hopes that the step would compel people to come within the tax net, especially as the Voluntary Disclosure of Income Scheme (VDIS) -- another scheme of the department -- is in effect till mid-February, 2009.
The government has set a target of mobilizing about 32 percent more revenue than last fiscal year. While experts and the private sector have tagged the target as impossible to achieve, the Ministry of Finance has unveiled different schemes and implemented various strategies to meet the target. The revenue collection figure for the first five months of the fiscal year suggests the ministry has been successful so far.
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